MUMBAI: Norway’s Telenor has approachedAircel and Reliance Communication to explore a merger via share swap, as consolidation grips the Indian airwaves, said three executives aware of the matter. Telenor has expressed its willingness to combine its business, customer base plus spectrum with the merged Aircel-RCom entity, even though the spectre of the apex court looms large on the Indian operations of the Malaysian telco.
Upon completion Telenor will own 10% in the three way alliance. Both Maxis Communication Bhd, Aircel’s promoter and RCom will get proportionally diluted and end up owning 45% each in the venture.
“Discussions among the three had started around last Christmas but it has been in a limbo for the last few weeks due to the Supreme Court shadow over Aircel’s local operations. By the end of this week, there will be clarity on that front. If the court decides to quash the Aircel license, then even the bigger Aircel-RCom merger will collapse,” said an executive aware of the ongoing discussions. “Aircel has been saying that its operations are ring fenced but a green signal from the court will kick start the negotiations.”
Telenor joins M&A rush, seeks Aircel-Reliance Communication tieup - The Economic Times
Upon completion Telenor will own 10% in the three way alliance. Both Maxis Communication Bhd, Aircel’s promoter and RCom will get proportionally diluted and end up owning 45% each in the venture.
“Discussions among the three had started around last Christmas but it has been in a limbo for the last few weeks due to the Supreme Court shadow over Aircel’s local operations. By the end of this week, there will be clarity on that front. If the court decides to quash the Aircel license, then even the bigger Aircel-RCom merger will collapse,” said an executive aware of the ongoing discussions. “Aircel has been saying that its operations are ring fenced but a green signal from the court will kick start the negotiations.”
Telenor joins M&A rush, seeks Aircel-Reliance Communication tieup - The Economic Times